SEC Approves Real-Time Trading for Digital Money Market Fund Shares

Federal regulators have given WisdomTree permission to offer instant trading of blockchain-based shares in a money market fund. The approval marks the first time investors can buy and sell tokenized mutual fund shares throughout the trading day rather than waiting until market close.

WASHINGTON – Federal securities regulators announced Monday they have approved a groundbreaking request from investment firm WisdomTree, permitting real-time trading of digital shares in a Treasury money market fund. The Securities and Exchange Commission said the decision could accelerate transaction processing and improve investment access for everyday investors.

The regulatory approval represents a significant milestone in the growing movement to digitize traditional financial markets using blockchain technology. Previously, investors would have been restricted to conducting transactions only at the close of each trading day under standard SEC mutual fund regulations.

Will Peck, who oversees digital assets at WisdomTree, expressed excitement about the regulatory breakthrough. “This relief preserves the protections of a regulated money market fund while permitting retail investors intra-day liquidity,” said Brian Daly, who leads the SEC’s Investment Management division.

The Treasury Money Market Digital Fund becomes the first tokenized mutual fund to receive this type of regulatory exemption, according to company officials. Peck described WisdomTree as “thrilled” by the development in a company statement.

The approval comes as cryptocurrency and blockchain companies increasingly seek to expand into traditional financial services, benefiting from a more favorable regulatory climate in Washington toward digital asset innovations. Tokenized securities allow traditional investments to be traded on distributed digital ledgers, potentially offering faster settlements and broader market access.